Global Helium Demand Set to Double by 2035 Amid Semiconductor Industry Boom
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Helium demand to double by 2035, tracking chip production boom, report says
Global demand could exceed 322 million cubic meters by 2035 for the gas used widely in manufacturing due to its cooling and inert properties, said the report, released in August. The global semiconductor market is expected to grow by 13.1% in 2024, according to World Semiconductor Trade Statistics, amid a strong demand from artificial intelligence applications. Helium is essential for heat management during semiconductor production and it has no viable alternatives currently. As the gas is a finite resource, the total global reserves could run out at a much faster rate due to rising demand from industries such as AI, quantum computing, telecoms, aerospace and electric vehicles, according to the report. CONTEXT Production of helium, the second lightest element after hydrogen, is expected to rise with Qatar and Russia ramping up their output, the report said. However, there was no guarantee of a disruption-free supply due to geopolitical tensions, the report added. Air Products, Linde and Air Liquide and the privately-held Zephyr Solutions are some of the biggest helium-producing companies in the world. BY THE NUMBERS Global helium production averaged about 160 million cubic feet between 2019 to 2023, according to the report. Demand for the gas is likely to rise five-fold in the semiconductor industry, the report said. Helium is only produced in a handful of countries, with the U.S. and Qatar among the leading players in the industry. In 2023, the estimated U.S. sales of grade-a helium and gaseous helium was an estimated 2.8 billion cubic feet valued at about $1.1 billion, according to the U.S. geological survey data. (Reporting by Sourasis Bose in Bengaluru; Editing by Janane Venkatraman)
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Helium Demand to Double by 2035, Tracking Chip Production Boom, Report Says
(Reuters) - The global demand for helium is likely to nearly double by 2035, backed mostly by a rise in demand from the semiconductor industry due to the lack of viable alternatives, according to a report by market research firm IDTechEx. Global demand could exceed 322 million cubic meters by 2035 for the gas used widely in manufacturing due to its cooling and inert properties, said the report, released in August. WHY IT'S IMPORTANT The global semiconductor market is expected to grow by 13.1% in 2024, according to World Semiconductor Trade Statistics, amid a strong demand from artificial intelligence applications. Helium is essential for heat management during semiconductor production and it has no viable alternatives currently. As the gas is a finite resource, the total global reserves could run out at a much faster rate due to rising demand from industries such as AI, quantum computing, telecoms, aerospace and electric vehicles, according to the report. CONTEXT Production of helium, the second lightest element after hydrogen, is expected to rise with Qatar and Russia ramping up their output, the report said. However, there was no guarantee of a disruption-free supply due to geopolitical tensions, the report added. Air Products, Linde and Air Liquide and the privately-held Zephyr Solutions are some of the biggest helium-producing companies in the world. BY THE NUMBERS Global helium production averaged about 160 million cubic feet between 2019 to 2023, according to the report. Demand for the gas is likely to rise five-fold in the semiconductor industry, the report said. Helium is only produced in a handful of countries, with the U.S. and Qatar among the leading players in the industry. In 2023, the estimated U.S. sales of grade-a helium and gaseous helium was an estimated 2.8 billion cubic feet valued at about $1.1 billion, according to the U.S. geological survey data. (Reporting by Sourasis Bose in Bengaluru; Editing by Janane Venkatraman)
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A new report predicts a significant increase in helium demand, driven by the growing semiconductor industry. The surge is expected to impact various sectors, from medical imaging to space exploration.
Helium Demand Surge Forecast
A recent report by research firm Benchmark Mineral Intelligence has revealed that global helium demand is projected to double by 2035, primarily driven by the booming semiconductor industry
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. This forecast highlights the critical role of helium in various technological advancements and industries.Semiconductor Industry: The Primary Driver
The semiconductor industry, which relies heavily on helium for chip production, is expected to be the main force behind this surge in demand. Helium is crucial in creating the controlled, ultra-clean environments necessary for manufacturing advanced chips
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. As the global demand for semiconductors continues to rise, driven by technologies such as artificial intelligence and cloud computing, the need for helium in chip fabrication is set to increase significantly.Impact on Other Industries
While the semiconductor sector is the primary driver, the increased demand for helium is expected to affect various other industries:
- Medical Imaging: Helium is essential for cooling superconducting magnets in MRI machines
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. - Space Exploration: The gas plays a crucial role in purging and pressurizing space launch vehicle fuel tanks
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. - Scientific Research: Helium is vital in various scientific applications, including particle accelerators and nuclear magnetic resonance spectroscopy
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Supply Concerns and Price Volatility
The projected surge in demand raises concerns about potential supply shortages and price volatility. Helium has already experienced significant price fluctuations in recent years, with costs rising from $3 per hundred cubic feet in 2010 to $30 in 2019, and reaching as high as $55 during the 2022 shortage
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New Sources and Production Methods
To address the growing demand, efforts are underway to develop new helium sources and production methods:
- Qatar is expanding its helium production capabilities, aiming to become the world's top exporter
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. - Companies are exploring innovative extraction techniques, such as separating helium from natural gas streams
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. - There's growing interest in helium production from carbon-free sources to align with sustainability goals
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Economic Implications
The increasing demand for helium is expected to have significant economic implications. As a critical component in various high-tech industries, the availability and cost of helium could impact global supply chains and technological advancements. Countries with substantial helium reserves or production capabilities may gain strategic advantages in the evolving economic landscape
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|Helium Demand to Double by 2035, Tracking Chip Production Boom, Report Says
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